SENSIBLE INVESTING
Sustainable investments at a glance
Management teams in EBG’s portfolios implement value-generating sustainability strategies in the private market asset classes of private equity, infrastructure, real estate and other real assets. Our focus is high-quality and sustainable investments with substantial positive impact. We globally source specialist managers that have proven and at the same time differentiating strategies.
SUSTAINABLE FOOD & AGRICULTURE
- Significant market opportunities in advanced agriculture and high-quality sustainably produced food products that progress the shift to a more sustainable healthy food industry and food security
- A diverse and attractive market segment that includes organic and fair-trade products, no genetic modification and vegetarian/vegan goods
- Innovative SMEs and medium-sized companies with high-quality products, rapid growth and above-average margins provide a valuable complement to investments in traditional segments within the food value chain
Resource Efficiency, Pollution Reduction & New Materials
- Products (hardware and software) and services that increase resource efficiency and/or reduce environmental impact, as well as utilize innovative, environmentally friendly materials
- Innovative, cost-competitive suppliers that integrate sustainability into their business models create attractive growth segments within traditional industries
- Particularly interesting investments in medium-sized companies with defendable business models that also offer above-average exposure to corresponding growth drivers
Social & Core Infrastructure
- Investment in essential public services such as schools, hospitals, social housing, student accommodation, public transport, road infrastructure, utility networks and waste management
- Numerous benefits include substantial diversification, low dependence on economic cycles and intensity of use, no interest rate risk and partial inflation protection
- Stable, attractive cash yields over long maturities with largely avoided CO2 and ESG risks
Renewable Energy
- Proven technologies, increasingly in combination with storage, are growing rapidly within the infrastructure asset class and offer stable cash returns due to long-term purchase agreements and in some cases additional environmental certificates
- In private equity, a wide variety of different growth companies with innovative products (hardware and software) and services along the value chain
- Cost reduction, storage, distributed supply, smart-metering, customer segmentation, repowering, and a tight focus on specific market segments or regions drive returns
Education & Healthcare
- Scalable, high-quality and affordable educational solutions that strengthen society and are in high demand, especially in emerging markets
- Asia, Africa and Latin America in particular offer attractive growth opportunities for practical business models in healthcare and cost-efficient distribution systems that inform and treat consumers fairly
- Attractive and innovative companies that focus on disease prevention, treatment and patient monitoring within the healthy living trend
Sustainable Timberland
- Sustainably and efficiently cultivated mixed forests and plantations, including hard and softwoods and manufacturing of special products and semi-finished goods.
- Continuous and sustainable production of a naturally growing real asset with limited availability and increasing long-term demand.
- Permanent conservation of forest areas, sale of carbon credits and local impact projects are important value drivers and components of risk management.
Responsible consumer & Financial products
- Products and services that enable underserved, lower income groups to meet basic needs at a lower cost and higher quality, often rapidly growing due to innovative distribution models such as mobile telephony
- Healthy, environmentally sensitive and high quality “sustainable lifestyle” products and services that are sustainably produced and designed for prevention, circularity and the blue economy
- Scalable, often cyclically resistant business models across a broad range of industry sectors
Sustainable mobility, supply chain management & Circular economy
- Climate-friendly mobility and transport systems and intelligent, software-driven business models in areas such as fleet and traffic management, car-sharing, e-mobility and public transportation
- Integrated, efficient supply chain management, such as reverse logistics and reduction of resource consumption and food waste
- Attractive business models which reduce cost and capital intensity with innovative solutions that contribute to a climate-neutral closed-loop society
Climate change
- Broad, cross-cutting theme in which we invest across various asset classes and sectors such as renewable energy, resource efficiency and sustainable foods and consumer products
- Numerous medium-sized companies with innovative, climate-friendly products and services with strong competitive positions across multiple sectors and rapid-growth markets in the “low carbon economy”
- Investments that slow climate change enable effective, fundamental hedging of conventional investments with higher CO2 risks within the overall portfolio
Green real estate and affordable housing
- Fundamentally defensive and proven strategies (a combination of Core Plus and Value-Add) in affordable, urban housing in close proximity to public transport for families, senior citizens and other population segments
- High demand, high occupancy and low turnover rates create a diversified investment profile with non-correlated income stability in market downturns – and attractive cash distributions and total return
- Selective capital investments that improve resource efficiency with rapid payback reduce operating and utility costs and increase building value
